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Due to get small inheritance. How will this affect me?

mumontheedge77mumontheedge77 Member Posts: 1 Listener
edited July 2 in Universal Credit
Hello all , 
today I’ve been made aware that I am entitled to half of my mother’s estate 
after her funeral costs etc selling the property and getting it to some good order again I predict I may inherit £25,000 
I work part time I claim lower rate pip on both parts as I have an incurable illness 
I also claim universal credit as I have two children 
this will some time before probate is granted let alone the property to sell
but in a born worrier , out of the potential £25,000 I wanted to pay half of car loan off £6,000 as the payments are steep and give my non dependant son £3,000 towards a deposit on a house can I do any of this and how I’ll it effect me Thankyou to all 
mum on the edge 


  • woodbinewoodbine Community Co-Production Group Posts: 4,454 Disability Gamechanger
    @mumontheedge77 good evening and a warm welcome to scope, nothing will happen until you actually get the money, your PIP will not be affected as it's never means tested, UC is means tested and over £16k in savings you get no UC between 6k and 16k its reduced, paying off your car loan is perfectly ok for UC not sure about giving 3k away.
    If you get help with housing cost with UC that will be affected as will CTR.

    "Putting a child into care, isn't caring for a child" (T.Rhattigan)
  • calcotticalcotti Member Posts: 2,173 Pioneering
    The important thing is the amount of capital you have on the last day of your monthly assessment period (AP).
    If you receive £25,000 near the start of your AP but have used some to pay off debt to bring the total below £16,000 before the end of the AP then your UC can continue. You would need to report the capital at the end of the AP and I recommend a note in the journal explaining what was received and what was spent.

    If you give money away this may be regarded as deprivation of capital (although it shouldn't be unless DWP consider the intention to retain or increase benefit entitlement was a significant purpose) in which case you will be treated as if you still have the money.
    See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/890315/admh1.pdf
    paragraphs H1795 to H1846.

    Capital of £6000 or less is ignored. Capital of £16,000 or over will end the UC claim. Between £6000 and £16000 there is a deduction of £4.35 for every £250, or part thereof, over £6000.

    If you have other debts (credit cards etc) it's an opportunity to pay these off as well.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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